Legal Question in Business Law in California
Home Mortgage Refinance Nightmare
Here's the problem. Around July 1 I contacted a well know mortgage
company to refinance my home mortgage. I was approved, and a notary
came out and I signed all of the loan papers on July 10. I also wrote a
$250 check to lock in the mortgage rate. The company was late to
getting an appraisal and late to getting the loan to funding. On August
20 I was notified that the rate lock period has expired and therefore the
original loan terms are now no good. They are now offering a higher
interest rate and much higher fees. I have documented through emails
that they are the ones who have slowed the deal down. Do I have a case
for breach of contract? Negligence? Anything? Thanks
2 Answers from Attorneys
Re: Home Mortgage Refinance Nightmare
An attorney would have to review the documents to answer this question clearly. However, generally, these lending contracts are very one sided and I'm sure there is an exculpatory clause in the contract preventing you from claiming against them for delay. Please read the legal documents in detail. Also, please consult a local attorney to assist you. Good luck and thanks for inquiring.
Re: Home Mortgage Refinance Nightmare
It is impossible to know whether you have a potentially winnable cause of action without reading your full contract very carefully, then examining the supporting evidence of breach of contract (or negligence).
A suit for breach of contract and one based on economic injury due to negligence would be quite different as to facts required to support the claim, likelihood of recovery, and perhaps amount of damages.
Typically, lender contracts are so full of one-sided protective provisions that it is very hard to pin liability on them.
Your best bet is to find a lawyer near you who would be willing to review the documentary evidence supporting your potential suit and give you a free appraisal of your chances of success. You should be skeptical of anyone who gives you a glowing report on your chances without pointing out the pitfalls and wants a big retainer to initiate action (or, worse, to do further review of your chances for winning).
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